Android Studio Project Setup For Espresso Tests
Solution 1:
Below is my working Espresso gradle setup based on Android Studio 1.1.0 + Espresso 2.0 + Support Library v11 + gradle environment. It looks likely that you missed androidTestCompile 'com.android.support.test.espresso:espresso-contrib:2.0' library. 
dependencies {
    // ...
    androidTestCompile 'com.android.support.test.espresso:espresso-core:2.0'
    androidTestCompile 'com.android.support.test:testing-support-lib:0.1'
    androidTestCompile 'com.android.support.test.espresso:espresso-contrib:2.0'
}
android {
    defaultConfig {
        minSdkVersion 10
        targetSdkVersion 21
        testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
    }
    sourceSets {
        packagingOptions {
            //...
            exclude 'META-INF/LICENSE.txt'
            exclude 'LICENSE.txt'
        }
    }
    sourceSets {
        main {
            manifest.srcFile 'AndroidManifest.xml'
            java.srcDirs = ['src/main/java']
            res.srcDirs = ['res']
        }
    }
}
About the directory, yes. just maintain androidTest and main under src folder. But, your setting does not make IDE to recognize androidTest folder as a test project folder. For that, two projects with same package name causes multi dex error I think. Use androidTestCompile to espresso-related lines in gradle dependencies and clean/rebuild project.
Note that you have to set all referenced projects gradle to same testInstrumentationRunner.
I also spent times to make it work. I wrote Korean tutorial to setup and run Espresso. Sorry about the language but screenshots might be helpful or you can try Google translate to read it.
EDIT. APPENDED BELOW
I thought why your IDE did not show green color in androidTest folder (means Test Project), and found your gradle setup seems to be wrong. 
The line
{ main { java.srcDirs = ['src/main/java', 'src/androidTest/java'] } } make IDE to recognize androidTest is a Project folder not Test Project folder. remove second one. androidTest will be automatically recognized as a Test Project.
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